Dallas-based Invitation Homes Inc. (INVH) operates as a leading single-family home leasing and management company in the United States. With a market cap of $20.8 billion, Invitation Homes focus on providing high-quality, updated homes in desirable neighborhoods, catering to modern lifestyle demands.
Companies with a market cap of $10 billion or more are categorized as "large-cap stocks." Invitation Homes fits this description perfectly, with its market cap exceeding this threshold. Its portfolio is strategically concentrated in the Western United States, Southeast, Texas, and Florida, offering homes with valued features like proximity to jobs, good schools, and transportation corridors, underscoring its prominence in residential real estate.
INVH touched its two-year high of $37.80 on Sept. 4, 2024, and is currently trading 10.4% below that peak. Meanwhile, INVH stock has surged 5.4% over the past three months, outpacing the Residential REIT ETF’s (HAUS) 2.6% gains during the same time frame.
However, INVH has notably underperformed other residential REITs over the longer term. INVH has declined 6% over the past six months and 3.5% over the past year, compared to HAUS’ 5.1% dip over the past six months and 15.9% surge over the past 52 weeks.
To confirm the downturn, INVH has traded mostly below its 50-day moving average since late September last year until last month and mostly below its 200-day moving average since early October last year with some fluctuations.
Invitation Homes’ stock soared 5.5% after the release of its impressive Q4 results on Feb. 26. The company reported a 5.6% year-over-year revenue growth, reaching $659 million, slightly surpassing analyst expectations. Additionally, Core Funds from Operations (FFO) per share increased by 5.9% year-over-year to $0.47, reflecting strong operational efficiencies and sustained rental growth. With average occupancy rates at an impressive 96.7%, Invitation Homes continues to uphold high standards of operational effectiveness and investor satisfaction.
For FY 2024, Invitation Homes achieved a 7.7% year-over-year growth in total revenues to $2.6 billion, while Adjusted Funds from Operations (AFFO) per share rose by 6.7% to $1.60. The company strategically expanded its portfolio, adding 2,200 newly built homes. Despite prevailing challenges in the broader real estate market, Invitation Homes has maintained a competitive edge through targeted investments in new developments and disciplined cost management, establishing a solid foundation for sustainable growth.
While INVH has outpaced its peer Equity Residential’s (EQR) 8.8% decline over the past six months, it has notably underperformed EQR’s 10% gains over the past year.
Among the 22 analysts covering the INVH stock, the consensus rating is a “Moderate Buy.” Its mean price target of $36.49 represents a 7.7% premium to current price levels.
